Sanchez Company Planned to Produce 12,000 Units

question 39

Multiple Choice

Sanchez Company planned to produce 12,000 units.This level of activity required 20 setups at a cost of $22,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.At 10,000 units,what is the flexible budget amount for total setup costs?

• A) $7,500
• B) $22,000
• C) $26,000
• D) $29,500

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